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Week of January 9, 2012Volume 2, No. 2

Top 5 Super Independents vs. Marathon Oil

U.S. Companies, Based on Enterprise Value

Slide

Occidental Petroleum

Number One

November 15, 2011


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Slide

Anadarko Petroleum

Number Two

December 7, 2011


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With the recent split of Marathon, we asked -- Where does Marathon Oil now rank among the Super Independents?  Answer: #7 based on enterprise value at market close on January 9, 2012.  Also, for the group Apache ranks #1 for production.

Above are slides from the Top Two Super Independents, Occidental and Anadarko.  Below are the next three -- Apache, EOG, Chesapeake along with Marathon for comparative purposes.  


Top 10 U.S. based Super Independents (1)

Company Market Cap
($B)
Enterprise Value
($B)
Debt/Cap
(%)
Production
(MBOE/d)
Occidental $78.7 $80.5 14% 743
Anadarko $40.2 $51.5 42% 555
Apache $38.0 $45.8 21% 752
EOG $27.5 $31.3 30% 427
Chesapeake $15.1 $29.8 42% 555
Devon $26.6 $29.0 30% 661
Marathon $21.6 $21.8 23% 343
Noble $17.3 $19.9 34% 224
Continental $13.4 $14.3 27% 66
Pioneer $11.6 $14.1 33% 128

(1)  Enterprise Value as of Jan 9, 2012.  BOE/D is 3Q 2011 average.


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featured.slides from docFinder

Slide Slide Slide Slide

Apache, #3


November 16, 2011

EOG, #4


December 1, 2011

Chesapeake, #5


January 9, 2012

And, Marathon Oil  #7!


November 15, 2011

Apache ranks as the #3 Super Independent but #1 in terms of BOE/d production for the group.  Apache set another production record in 3Q 2011 -- 752,000 boe/d -- primarily through profitable production of conventional resources.  APA also set another cash flow record, $2.7 billion, in the same quarter.


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EOG prides itself on being a first mover in unconventional oil plays while keeping a massive inventory of gas assets.  Going forward in 2012, EOG is focused on high ROR oily plays, plans to fund capex without issuing equity and will sell properties as necessary to maintain a <30% net debt-to-cap.


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Chesapeake, moving up in the ranks, now stands at number 5.  By the end of 2012, CHK expects to complete its two year 30/25 plan -- growing production by 30% and reducing long debt by 25% and is more than half way on track.  As opposed to its peers, CHK is committed to areas limited only to U.S. onshore.


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Marathon completed its split on July 1, 2011- creating Marathon Oil Company (a new Super Independent) and Marathon Petroleum (5th largest U.S. refiner). Marathon expects 5-7% CAGR of production driven by largely by U.S. resource plays -- of which the Eagle Ford and Bakken rank as #1 and #2. 


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featured.transactions from PLS global M&A database

DateHeadlineValue
01/09/12Teck Resources acquires Silver Birch Energy - Canada oil sands$416MM
01/06/12Sea Dragon acquires National Petroleum Egypt for cash and equity$230 MM
01/03/12Pioneer Drilling acquires Go-Coil LLC (Tubing services)$110 MM
01/03/12Sinopec JV's with Devon on 5 U.S. Unconventional Plays$2,500 MM

Source: PLS M&A Database

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